Stocks End Up After Turbulent Week of Trading

Weekly Wrap Up

After another harrowing week of negotiations in the eurozone, major indices ended slightly up this week. The week began with Germany and France coming out with a proposal to modify the relevant European Union treaties to create a fiscal union on top of a currency one. There has been a lot of waffling from all sides on the plausibility of this, and whether or not it would be enough to remedy the debt crises Europe faces today, before it can help prevent the next one. Moreover, Friday UK prime minister David Cameron walked away from discussions, removing the possibility of UK entering the new union.In corporate news, Ford ((F: Charts, News)) began to issue dividends again for the first time in five years, signaling optimism for its prospects.
The EU and Justice Department are meanwhile looking into Apple ((AAPL: Charts, News)) and five major publishers on suspicion of price fixing in the ebook industry. More Market News

Economic News

Household Wealth in U.S. Falls for Second Straight Quarter
Household wealth in the U.S. fell from July through September for a second straight quarter as the European debt crisis depressed stocks and home values decreased.
Net worth for households and non-profit groups decreased by $2.45 trillion to $57.4 trillion, the Federal Reserve said today in its flow of funds report from Washington. Americans reduced debt in the third quarter, extending a string of declines dating back three years. Click here to read the full article
Consumer Credit in U.S. Rose in October to Two-Year High
U.S. consumer borrowing rose in October to the highest level in two years, propelled by gains in non-revolving debt like auto and student loans.
Credit increased by $7.65 billion to $2.46 trillion, the most since October 2009, Federal Reserve figures showed today in Washington. The advance was in line with the median forecast of economists surveyed by Bloomberg News that projected a $7 billion gain. Click here to read the full article
Factory Orders Decline
Companies decreased their overall orders to American factories in October for the second straight month, the Commerce Department said Monday, in what may be evidence that the economy remains weak despite other signs of improvement. Click here to read the full article

Business News

Ford ends its dividend drought
It’s only a nickel a share, but Thursday’s announcement of the payout is worth a whole lot more than that. Read about Ford's dividend.Back in 2006, when it dropped its dividend, Ford F +0.70% was struggling. The company was racking up one quarterly loss after another, had almost nothing new in the pipeline, and was losing market share at an alarming rate. In automotive circles, old jokes about Ford’s demise were no longer jokes. Click here to read the full article

Bank of America begins job cuts
Bank of America CEO Brian Moynihan told investors and analysts on Tuesday that layoffs across the franchise are under way as part of his plans to cut costs. Click here to read the full article

Technology Focus

Apple under investigation by EC for e-book 'price fixing'
Penguin, Harper Collins, Hachette Livre, Simon & Schuster and Holzbrink, the German parent of Macmillan, may have been engaging in illegal and anti-competitive practices designed to block potential competitors, the EC said as it opened the investigation yesterday.
All five publishers have signed up to the so-called "agency model" of pricing, whereby publishers are allowed to dictate the price consumers pay for an e-book, as long as they hand over 30pc of their revenues to the retailer. Click here to read the full article
IBM Plans to Acquire DemandTec
BM today announced plans to acquire DemandTec, a provider of cloud-based business analytics software, for approximately $440 million.IBM will incorporate DemandTec's price, promotions, marketing, and merchandising analytics software into its Smarter Commerce Initiative. DemandTec, which is based in San Mateo, Calif., will operate within IBM's Enterprise Marketing Management Group headed by Yuchun Lee. Click here to read the full article

Your Money

Emerging-Market Currencies Tumble, Debt Down, After ECB Disappoints
NEW YORK (Dow Jones)--Emerging-market currencies tumbled and sovereign debt weakened Thursday after the European Central Bank fell short of committing to increase buying of euro-zone government debt and disappointed markets. Click here to read the full article
U.K. Adds Wild-Card Risk to Euro Deal
The euro-zone crisis was difficult enough with just two countries at the top table. But France and Germany's efforts to save the single currency are being complicated by the need to accommodate the demands of the U.K. Click here to read the full article
Published on Dec 9, 2011
By InvestorGuide Staff

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